審計(jì)學(xué)一種整合方法-------Chapter03課件

1、審計(jì)學(xué)一種整合方法-Chapter03,Audit Reports,Chapter 3,審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 1,Describe the parts of the standard unqualified audit report.,審計(jì)學(xué)一種整合方法-Chapter03,Parts of the StandardUnqualified Audit Report,1. Report title 2. Audit report address 3. Introductory paragraph 4. Scope paragraph 5.

2、Opinion paragraph 6. Name of CPA firm 7. Audit report date,審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 2,Specify the conditions required to issue the standard unqualified audit report.,審計(jì)學(xué)一種整合方法-Chapter03,Conditions for StandardUnqualified Audit Report,1. All financial statements are included.,2. The thr

3、ee general standards have been followed in all respects on the engagement.,3. Sufficient evidence has been accumulated to conclude that the three standards of field work have been met.,審計(jì)學(xué)一種整合方法-Chapter03,Conditions for StandardUnqualified Audit Report,4. The financial statements are presented in ac

4、cordance with generally accepted accounting principles.,5. There are no circumstances requiring the addition of an explanatory paragraph or modification of the wording of the report.,審計(jì)學(xué)一種整合方法-Chapter03,Four Categories of Audit Reports,1.Standard unqualified,3.Qualified,2.Unqualified with explanator

5、y paragraph or modified wording,4.Adverse or disclaimer,審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 3,Understand combined reporting on financial statements and internal control over financial reporting under Section 404 of the Sarbanes-Oxley Act.,審計(jì)學(xué)一種整合方法-Chapter03,Sarbanes-Oxley Act,This Act requires t

6、he auditor of a public company to attest to managements report on the effectiveness of internal control over financial reporting.,PCAOB Auditing Standard 2 requires the audit of internal control to be integrated with the audit of the financial statements.,審計(jì)學(xué)一種整合方法-Chapter03,Sarbanes-Oxley Act,Combi

7、ned Report on Financial Statements and Internal Control Over Financial Reporting,1. Introductory paragraph 2. Scope paragraph 3. Definition paragraph 4. Inherent limitations paragraph 5. Opinion paragraph,審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 4,Describe the five circumstances when an unqualified re

8、port with an explanatory paragraph or modified wording is appropriate.,審計(jì)學(xué)一種整合方法-Chapter03,Unqualified Report with Explanatory Paragraph,1. Lack of consistent application of generally accepted accounting principles 2. Substantial doubt about going concern 3. Auditor agrees with a departure from prom

9、ulgated accounting principles 4. Emphasis of a matter 5. Reports involving other auditors,審計(jì)學(xué)一種整合方法-Chapter03,Substantial Doubt AboutGoing Concern,1. Significant recurring operating losses orworking capital deficiencies. 2. Inability of the company to pay its obligations as they come due. 3. Loss of

10、 major customers, the occurrence of uninsured catastrophes. 4. Legal proceedings, legislation that might jeopardize the entitys ability to operate.,審計(jì)學(xué)一種整合方法-Chapter03,Auditor Agrees with a Departurefrom a Promulgated Principle,The auditor must be satisfied and must state and explain, in a separate

11、paragraph or paragraphs in the audit report, that adhering to the principle would have produced a misleading result in that situation.,審計(jì)學(xué)一種整合方法-Chapter03,Emphasis of a Matter,Under certain circumstances, the CPA may want to emphasize specific matters regarding the financial statements, even though

12、the CPA intends to express an unqualified opinion.,審計(jì)學(xué)一種整合方法-Chapter03,Reports Involving Other Auditors,1. Make no reference in the audit report,3. Qualify the opinion,2. Make reference in the report (modified wording report),審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 5,Identify the types of audit repor

13、ts that can be issued when an unqualified opinion is not justified.,審計(jì)學(xué)一種整合方法-Chapter03,Departures from AnUnqualified Opinion,1. Scope limitation,2. GAAP departure,3. Auditor not independent,審計(jì)學(xué)一種整合方法-Chapter03,Qualified Opinion,A qualified opinion report can result from a limitation on the scope of

14、 the audit or failure to follow generally accepted accounting principles.,審計(jì)學(xué)一種整合方法-Chapter03,Adverse Opinion,It is used only when the auditor believes that the overall financial statements are so materially misstated or misleading that they do not present fairly the financial position or results of

15、 operations and cash flows in conformity with GAAP.,審計(jì)學(xué)一種整合方法-Chapter03,Disclaimer of Opinion,It is issued when the auditor is unable to be satisfied that the overall financial statements are fairly presented.,審計(jì)學(xué)一種整合方法-Chapter03,Learning Objective 6,Explain how materiality affects audit reporting d

16、ecisions.,審計(jì)學(xué)一種整合方法-Chapter03,Materiality,A misstatement in the financial statements can be considered material if knowledge of the misstatement would affect a decision of a reasonable user of the statements.,審計(jì)學(xué)一種整合方法-Chapter03,Levels of Materiality,Amounts are immaterial.,Amounts are material but

17、do not overshadow the financial statements as a whole.,Amounts are so material or so pervasive that overall fairness of the statements is in question.,審計(jì)學(xué)一種整合方法-Chapter03,Relationship of Materiality toType of Opinion,Materiality Level,Significance in Terms of Reasonable Users Decisions,Type of Opini

18、on,Users decisions are unlikely to be affected.,Immaterial,Unqualified,Users decisions are likely to be affected.,Material,Qualified,Users decisions are likely to be significantly affected.,Highly material,Disclaimer or adverse,審計(jì)學(xué)一種整合方法-Chapter03,Materiality Decisions,Failure to follow GAAP,Audit r

19、eport,Unqualified,Qualified opinion only,Adverse,審計(jì)學(xué)一種整合方法-Chapter03,Materiality Decisions,Dollar amount compared with a base,Measurability,Nature of the item,審計(jì)學(xué)一種整合方法-Chapter03,Materiality Decisions,Scope limitation,Audit report,Unqualified,Qualified scope and opinion,Disclaimer,審計(jì)學(xué)一種整合方法-Chapter0

20、3,Learning Objective 7,Draft appropriately modified audit reports under a variety of circumstances.,審計(jì)學(xué)一種整合方法-Chapter03,Discussion of ConditionsRequiring Departure,Auditors scope has been restricted,Statements are not in conformity with GAAP,Auditor is not independent,審計(jì)學(xué)一種整合方法-Chapter03,Learning Ob

21、jective 8,Determine the appropriate audit report for a given audit situation.,審計(jì)學(xué)一種整合方法-Chapter03,Auditors Decision Process,Determine whether any condition exists requiring a departure from a standard unqualified report.,Decide the materiality for each condition,Decide the appropriate type of report

22、,Write the audit report,審計(jì)學(xué)一種整合方法-Chapter03,More Than One Condition Requiringa Departure or Modification,The auditor is not independent.,There is a scope limitation.,There is a substantial doubt about the companys ability to continue as a going concern.,There is a deviation in the statements preparation in accordance to GAAP.,審計(jì)學(xué)一種整合方法-Ch